Meredith Sees Significant Gains in Fiscal Q4, Interactive Rev Jumps 17%

Meredith Corporation announced that fiscal 2010 fourth quarter total revenues grew 6% from the previous year, to $365 million. Advertising revenues jumped 7% from the prior year, to $202 million, with growth from both national and local advertising.

Interactive revenues for the quarter rose 17%.

Fiscal Year 2010

For the fiscal year, total revenues were $1.39 billion, compared to $1.41 billion the year before, while total ad revenues were $781 million, down from $787 million the prior year. Excluding political advertising generated in the prior year, ad revenues grew 1% in fiscal 2010, the company reported.
“Fiscal 2010 marked a return to earnings growth as we strengthened our business across the board,” said Meredith chairman and CEO Stephen M. Lacy. “We increased advertising market share in both magazine and television, grew the size of our consumer audiences, and generated higher sales of our licensed products at retail. Additionally, we made important investments in new media platforms including mobile and eTablets.”

Other fiscal achievements:
—operating costs declined by 3%, excluding special items
—cash flow from operations rose to $192 million, from $181 million in the previous year
—total debt dropped 20%, to $300 million

National Media Group Advertising Gains

Meredith’s share of overall magazine industry ad revenue increased to 12.3%, up from 9.5% in 2008. It was the fifth consecutive year of magazine market share gains for the company.

11 of Meredith’s 14 measured titles grew their share of ad revenues, according to the Publishers Information Bureau.

Fourth quarter ad revenues were up 1%.

Local Media Group Gains

For the full year, Local Media Group revenues grew 5%,  led by improved performance in the automotive, professional services and restaurant categories. Total advertising revenue rose 7% in the second half of fiscal 2010. That was led by 16% growth in non-poltical television advertising.

Meredith stations in six of its 10 markets grew revenues from the prior year. In the fiscal fourth quarter, Meredith stations in all of its markets posted revenue growth from the prior year period.

Meredith outperformed the industry as a whole, according to Television Bureau of Advertising data.

“The significantly improved results in non-political advertising revenues in our Local Media business in fiscal 2010, driven largely by automotive category spending, demonstrate the appeal that broadcast television has for advertisers,” Lacy said.